PARIS (Reuters) – French luxury group Kering said sales in the third quarter increased by 14%, driven by a strong showing in Europe, although revenues at its star label Gucci lagged the overall growth.
Luxury giants have been brushing off concerns that the industry’s post-pandemic boom could be cooling due to a looming recession, with U.S. shoppers taking advantage of the dollar’s strength in Europe and the key Chinese market bouncing back from COVID-19 restrictions.
Kering largely benefitted from that trend too, with overall sales in the three months to September coming in at 5.137 billion euros ($5.04 billion). The 14% increase on a comparable basis, which strips out currency fluctuations, was better than an analyst consensus for a 12% rise.
Sales at Gucci, however, rose by 9%, below a consensus forecast for 11% growth.
Kering’s finance chief Jean-Marc Duplaix said the label’s performance in China was “mixed” and “has yet to normalise,” without giving a precise figure.
Gucci, which accounts for the bulk of profits at Kering, has been under market scrutiny in recent months because after years of stellar growth its sales have underperformed those of some rivals, such as Louis Vuitton and Hermes.
($1 = 1.0183 euros)
(Reporting by Silvia Aloisi, editing by Mimosa Spencer)
